Wedbush boosts Apple price target to $350 on iPhone momentum, AI executive shakeup

In a move that underscores growing optimism around Apple’s pivot toward artificial intelligence, Wedbush Securities has raised its price target for Apple shares to $350 from $320, maintaining an “Outperform” or “Buy” rating on the stock. This adjustment, announced on Monday, implies roughly 26% upside from Apple’s recent trading levels around $278, positioning it as one of Wall Street’s most bullish calls on the tech giant. Led by veteran analyst Dan Ives, Wedbush’s decision hinges on a confluence of factors: Apple’s anticipated entry into the “AI Revolution” in 2026, robust iPhone 17 sales — particularly in China — and strategic leadership shifts aimed at accelerating AI development.
The Dawn of Apple’s AI Era in 2026
At the core of Wedbush’s bullish stance is the belief that 2026 will mark a transformative year for Apple, as the company finally unleashes a comprehensive AI strategy after what Ives describes as a “head-scratching” rollout in 2025. Apple has already introduced Apple Intelligence features, but Wedbush anticipates a more aggressive push, including deeper integrations that could monetize AI across its vast ecosystem of over 2.4 billion active devices.
Ives projects that AI-driven monetization—through enhanced services, premium features, and ecosystem lock-in—could add $75 to $100 per share to Apple’s valuation over the next few years. This “pure upside,” as Wedbush terms it, remains largely unpriced into the current stock, creating an attractive entry point for investors. “Apple is positioned to formally enter the AI arena in 2026,” Ives wrote in a note to clients, emphasizing that the company’s installed base positions it uniquely to capitalize on AI adoption without the heavy infrastructure costs borne by cloud-heavy rivals like Microsoft or Google.
A key catalyst? An expected partnership with Google’s Gemini AI model, which Wedbush forecasts will be formally announced in early 2026. While Apple has integrated OpenAI’s ChatGPT into its ecosystem, analysts see Gemini as a potential exclusive partner for Siri enhancements, accelerating Apple’s roadmap. This collaboration could blend Apple’s privacy-focused hardware with Google’s advanced language models, addressing criticisms of Apple’s slower AI pace. “This is the elephant in the room,” Ives noted, highlighting how such integrations could supercharge user engagement and open new revenue streams from subscriptions and app store boosts.
Strong iPhone 17 Sales Exceed Expectations
Complementing the AI narrative is Apple’s hardware performance. Wedbush highlighted “strong iPhone 17 sales trending well into year-end,” including resilient demand in China — a market that has been a pain point amid U.S.-China trade tensions. The iPhone 17 lineup, launched earlier in 2025, has exceeded Wall Street’s growth forecasts for the December quarter, setting the stage for a “healthy holiday season.”
Early indicators suggest the iPhone 17’s AI-teased features — such as on-device processing for smarter photo editing and real-time translation — are driving upgrades. Wedbush’s October 2025 hike from $310 to $320 was predicated on initial iPhone 17 strength; the latest increase builds on that, with Ives viewing it as evidence of sustained consumer appetite heading into an AI-infused upgrade cycle.
Leadership Overhaul Signals Commitment
Wedbush’s confidence is further bolstered by Apple’s internal shake-up in AI leadership. Longtime AI chief John Giannandrea is departing, a move Ives interprets as a deliberate pivot toward external expertise. Apple has recruited Amar Subramanya, a former Microsoft executive with roots at Google’s DeepMind, to spearhead AI efforts. This hire, along with anticipated further “outside talent” infusions, signals to Wedbush that CEO Tim Cook recognizes the need for fresh perspectives to compete in the AI arms race.
Ives expects Cook to remain at the helm through at least the end of 2027, providing continuity during this “key AI technology transition.” Under Cook’s stewardship, Apple has navigated regulatory scrutiny, antitrust battles, and supply chain disruptions, emerging with a services business that now rivals hardware in growth potential. Wedbush views these changes as a “culture shift” that will propel Apple forward, much like past hires from rivals turbocharged its silicon and software teams.
Broader Market Implications
Apple’s story resonates in a broader “risk-on” tech environment, where AI hype continues to fuel valuations despite lofty multiples. Ives likens the AI bull market to a party that’s “only at 10:30 p.m.,” with massive Big Tech investments laying the groundwork for decade-long growth. For Apple, trading at a forward P/E of around 37, the absence of an “AI premium” makes it a standout large-cap play, especially compared to peers like Nvidia or Amazon, which have baked in more aggressive AI expectations.
Wedbush’s Ives has long been a vocal bull, previously setting street-high targets during the 5G supercycle. But with AI now at the forefront, the firm sees echoes of that era: a multi-year upgrade wave that could propel Apple toward a $5 trillion market cap. As Ives puts it, “The pieces are falling into place for a major 2026 catalyst year.”
Risks and the Road Ahead
Of course, no forecast is without caveats. Apple’s AI ambitions face hurdles, including regulatory probes into app store practices and potential delays in Gemini integration. China sales, while rebounding, remain volatile amid geopolitical tensions. And broader economic slowdowns could crimp consumer spending on premium devices.
Yet, Wedbush’s conviction is clear: Apple’s blend of hardware dominance, services scale, and emerging AI prowess positions it for outsized gains. As investors digest this latest call, all eyes will be on Apple’s next earnings and any early whispers of 2026 product teases. For now, the message from Wedbush is unequivocal — Apple isn’t just catching up in AI; it’s poised to lead.
MacDailyNews Take: As we reported in September, “A little birdie sings us very positive songs regarding Apple’s all-new next-gen Siri.” That view has no changed. If anything, it’s getting stronger!

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